Index funds overtake stock-picking funds, now Kings of Wall Street – The Wall Street Journal
In 2000, I interviewed Anthony Ginsberg, who was managing director of Sanlam Investment Management at the time. He was giving up his cushy job in Cape Town's northern suburbs to open his own business offering index-trackers because his Sanlam bosses wouldn't support his vision. Ginsgobal Index Funds is still going great guns, with Ginsberg's operations spread across the globe. Today, Sanlam is among the companies to have embraced index funds – which is just as well because, as The Wall Street Journal reports, index funds now attract more assets than actively managed funds. The reason for the success of index trackers is because the highly paid investment professionals who run stock-picking funds cannot, in the main, outpace the returns generated by index trackers. – Jackie Cameron
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